10147. Commercial National Bank (Miles City, MT)

View Charter #5015 on SPMC

Bank Information

Episode Type
Suspension โ†’ Closure
Bank Type
national
Bank ID
5015
Charter Number
5015
Start Date
March 1, 1924*
Location
Miles City, Montana (46.408, -105.841)

Metadata

Model
gpt-5-mini
Short Digest
12f06fe13d6c839f

Response Measures

None

Receivership Details

Depositor recovery rate
57.9%
Date receivership started
1924-02-15
Date receivership terminated
1933-09-21
OCC cause of failure
Economic conditions
Share of assets assessed as good
33.2%
Share of assets assessed as doubtful
39.0%
Share of assets assessed as worthless
27.9%

Description

The articles consistently report that the Commercial National Bank of Miles City suspended business in March 1924 on the ground of insolvency and thereafter was in receivership under W. M. Turner. Subsequent pieces discuss receiver actions, dividend payments, surety litigation and settlements; there is no article indicating the bank reopened. Classification: suspension that resulted in permanent closure/receivership. Dates derived from article text (suspension March 1924) and later reporting (1925โ€“1928) about receivership and litigation.

Events (4)
1. August 24, 1895 Chartered
Source
historical_nic
2. February 15, 1924 Receivership
Source
historical_nic
3. March 1, 1924* Receivership
Newspaper Excerpt
M. Turner, receiver of the Commercial National Bank Miles City, corporation; W. M. Turner, receiver of the Commercial National bank ... has tendered his resignation; John A. Sanderson ... recently appointed receiver of the Commercial National bank and also ... Sanderson, as receiver for the Commercial National bank of Miles City, was also authorized ... receiver references throughout 1925-1928 articles indicating ongoing receivership status.
Source
newspapers
4. March 1, 1924* Suspension
Cause
Bank Specific Adverse Info
Cause Details
Bank suspended business citing insolvency (explicitly stated in article).
Newspaper Excerpt
When the Commercial National Bank suspended business in March, 1924, on the ground of insolvency
Source
newspapers

Newspaper Articles (10)
1. September 11, 1925 The Terry Tribune Terry, MT
Article from The Terry Tribune, September 11, 1925

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Article Text

NOTICE OF SHERIFF'S SALE In the District Court of the Sixteenth Judicial District of the State Montana, in and for the County of Prairie. Alfred P. Engebretson, Plaintiff, versus Anna Kingsley Murray, CommerNational Bank of Miles City, corporation, and M. Turner, receiver of the Commercial National Bank Miles City, corporation, Defendants. To be sold at Sheriff's sale, on the 25th day of September, 1925, at o'clock of said day the front door of the County Courthouse of Prairie County, Montana, the Town of in Prairie county. Montana, the following scribed property, to-wit: North half Southwest quarter and North half Southeast quarter and North half (Nยฝ) of Section One (1) township twelve (12) North of Range (52) East M., in Prairie County Montana, Dated Terry, Montana, this 20th of August, BRAGG. Sheriff. By Wm. Howard, Undersheriff. Attorney for Glendive,

2. December 1, 1925 Miles City Star Miles City, MT
Article from Miles City Star, December 1, 1925

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ANOTHER DIVIDEND PAYMENT ANNOUNC'D CUSTER COUNTY BANK RECEIVER H. E. HARD ANNOUNCES SECOND DIVIDEND PAYMENT OF TEN PER CENT TO DEPOSITORS AND REDITORS. Checks for second ten per cent distribution from the assets of the Custer County bank are ready to be delivered at the office of The Bank of Miles City, according to the announcement made here on Monday by H E. Richrad, receiver for the defunct institution The amount involved in the distribution is in the Richard Depositors and creditof the are required to present their claims at This makes the second dividend declared by the bank, the last dividend been distributed something like a year ago. This present announcement together with that made by the receiver of the Commercial National bank on Saturday is taken to indicate that a more optimistic feeling prevails in local financial circles.

3. January 14, 1926 Miles City Star Miles City, MT
Article from Miles City Star, January 14, 1926

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DE CARLE FILES RECOVERY SUIT CUSTER COUNTY DISTRICT COURT COUNTY TREASURER ACTING FOR COUNTY SEEKS JUDG MENT AGAINST LOC BANK AND RECEIVER AND INDIVID NEARLY $140,000 INVOICED IN ACTION BROUGHT IN CONNECTION WITH DEPOSITS MADE IN LOCAL BANK BEFORE DOORS CLOSED In his official capacity as Tuesday January court of Custer county and seeks judgment of against the defendants whom he names Commercial tional bank W M Turner receiver Howe George K Foster Dan Levalley Percy Williamson F R Savage Jensen W E Holt Oscar Helgerson and W Butler In his complaint Mr DeCarle county treasurer, alleges that on De comber 1923 the defendants executed each surety bond in the total of 300 000 guaran tee to the county for the of the funds deposited by the county in the defendant National bank and of the individual defendants named quali fied on the bond in its amount the sums How Jensen Holt contained and credit of Custer in defendant National bank from January February 11 was est and the total this Custer county the and for the and that judgment rendered against the mdividual named for which the qualified the bond to = from the made in Mr return at of in the upon attorne for have of heard

4. February 4, 1926 Belt Valley Times Belt, Armington, MT
Article from Belt Valley Times, February 4, 1926

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# Surety Company Settles Full settlement with interest from Feb. 11, 1924, has been made by the American Surety company of New York, on its bond of $75,000 given to secure Custer county deposits in the Commercial National bank at Miles City. Litigation on this bond has been pending in the federal court since last May. The surety company offered a settlement last October for the amount of the bond with interest but demanded that the county upon receiving payment make an assignment to the surety company of its claim against the bank to the extent of $75,000. The county refused to accept the money under those conditions, contending that until the county has been paid the full amount of its claim the bank either by sureties or by dividends from the receiver of the bank, no assignment should be made. By an assignment it is pointed out, the surety company would have participated in each 10 per cent dividend paid to date by the receiver. The settlement was made without such assignment.

5. June 4, 1926 The Bozeman Courier Bozeman, MT
Article from The Bozeman Courier, June 4, 1926

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(By Our Helena Correspondent.) Contract for the grading and surfacing with crushed gravel of a 19-mile stretch of the Roosevelt highway in Valley and Roosevelt countes west of the city of Wolf Point, was awarded by the state highway commission to Fitzgerald & Stanton of Great Falls, on a bid of $111,355.93. The contractors have until August 1, 1927, in which to complete the work. The contract for the erection of two steel bridges and 12 timber trestles on the same piece of work was let to J. F. Harrington of Missoula, at $33,909.50. Fitzgerald & Staunton also obtained the contract for the grading and surfacing of a piece of work on the Lewistown-Grass Range highway in Fergus county, extending easterly a distance of 3.8 miles from the city of Lewistown, at a figure of $16,565.54. The Security Bridge company of Billings was given the contract for the erection of a steel bridge across Boyd creek on this piece of work, at $4,170.98. For the surfacing with crushed gravel of 5.42 mies of the Livingston-Wilsall road out of Clyde Park in Park c ounty, the contract was awarded to J. N. Brown & Son of Bozeman at $11,621.78. F. E. Collison of Billings was the low bidder at $9,501.98 on the surfacing with crushed gravel of the Witt Hill section of the Yellowstone trail in Stillwater county, 5.22 miles in length. But one bid being received for the resurfacing of a piece of the Bitter Root road out of Hamilton, in Ravalli county, the contract was not awarded. In view of the condemnation of the Sun River bridge near Great Falls, the Cascade county board of commissioners has asked the state highway commission and the bureau of public roads for a joint reconnaisance looking to whether it would be wise to create a federal aid project starting to 1 the top of Gore hill and including the e bridge in a federal aid project, which would extend through the Sixth street viaduct on the west side, providing the city should wish to participate. 1 The commission will endeavor to arrange to have this done directly after Engineer E. M. Hulce of the highway com0 mission completes the examination of a contemplated project in Judith Basin county, within a few days. e So long as rail service between given t points is adequate and reasonably meets 0 public convenience and necessity, applicants for motor bus line certificates from e the Montana railroad commission must be t disappointed. This position the commission makes clear in an order issued denying e the application of Hugh Kelly for a line between Missoula and Philipsburg, Eight trains a day now run between e Drummond and Philipsburg, with mixed service. This train cost the railroad about $2,581.70 to operate from March, 1925 to e February, 1926, while its revenues were about $1.380 from passenger service for the same period, the commission found. Admitting that it would be a convenience n if business visitors to Philipsburg could arrive in the morning and leave in the r afternoon, the commission points out that such service is not a matter of necessity and both factors must appear in order to e warrant issuance of a bus line certificate 0 Admission of a bus line, the commission h declares, would, on the face of the showing made by the railroads in objecting to the d application mean the elimination of the S train service now available. y Upon a writ of error allowed by the t Montana supreme court on the application of Loud and Leavitt, counsel for the Com e mercial National bank of Miles City, and d its receiver, W. M. Turner, and for the Miles City National bank, in three cases ;, against Custer county and its county n treasurer involving the taxation of shares ; of stock in those national banking insti tutions, those three actions, consolidated ยฟ as one, are being taken to the supreme court of the United States on appeal from e the judgment of the Montana courts. et The cases involve the right of the taxing authorities of Montana to assess the stock is of national banks, under the state classi 1. fication statute, at 40 per cent of their true e value, whereas moneyed capital in the hands of individuals or concerns other le than banks, is assessed at but seven per

6. December 5, 1926 Miles City Star Miles City, MT
Article from Miles City Star, December 5, 1926

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BANK RECEIVER HERE RESIGNS HIS POSITION W. M. TURNER WHO HAS HAD CHARGE OF THE AFFAIRS OF THE CLOSED COMMERCIAL NAIONAL TENDERS RESIGNATION. W. M. Turner, receiver of the Commercial National bank of this city, and of the National bank nt Baker has tendered his resignation to become effective at the earliest convenient date. For some time Mr. Turner has been anxious to be relieved of his responsibilities here on account or his health, which has not been the best in this high altitude. Who his successor will be is not known at this time, but it is hinted that the duties will be assumed by one of the receivers of other Montana banks as it is the policy of the department to consolidate the work as much as posThere will be general regret over the resignation of Mr. Turner as he has exercised sound judgment in the administration of the affairs of the defunct bank He has had the welfare of the community at heart in the matter of liquidat ing the affairs of the defunct bank. Instead of foreing the collection of assets at times when would bring ruin to industry he has pursued policy of patience which in the long run it is believed will be beneficial not only to this section of the state, but to all personally concerned as well. Mr. Turner has been of the opinion that many of the stockmen and others will be able to liquidate if given time and his judgment in this particular has been proven wise in good many instances. Since coming to Miles City Mr and Mrs. Turner have made good many friends all of who will regret their departure. It is likely they will move to the coast. READ THE STAR WANT ADS.

7. December 12, 1926 Miles City Star Miles City, MT
Article from Miles City Star, December 12, 1926

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ISMAY DRILLER TO DIG WATER WELLS IN CITY George Askins of Ismay who spent Saturday in the city announeHere's Princess Alexis Obelenski. ed that upon his return to his home. he will arrange to haul OVof Russia, as she reached New York er his well drilling outfit to Miles on the S. S. Olympic to tour the United States for the benefit of City He has arranged for the Muscovite kids. drilling of a number soft water wells here. Having ordered a new truck. he will await its arrival in King the crook who steals the jew. Ismay when he will load up his maels and then returns them to their chinery and move to this point. He owner for reward; Sherman expects to remain here for some Cobb as Ned Pembroke who resolves time. he says. at the last curtain that it doesn't pay omake by correspond NEWLY APPOINTED BANK ence: R. Phillip George as George RECEIVER AT WORK HERE mer Lilliskov. R. A. Heren and H. John A. Sanderson who was reE. Herrick as three policemen: cently appointed receiver of the Mrs. J. J. Trzeinski as the dignified Commercial National bank and also

8. April 27, 1927 Miles City Star Miles City, MT
Article from Miles City Star, April 27, 1927

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COURT RULE IN FAVOR OF THE COUNTY JUDGE PRAY IN THE FEDERAL COURT AT HANDS DOWN DECISION IN SURETY COMPANY AGAINST CUSTER. HELD THAT UNTIL COUNTY PAID IN FULL CLAIM AGAINST COMMERCIAL SURETY COMPANY MAY NOT PARTICIPATE IN DIVIDENDS. Judge Charles N. Pray in federal court at Great Falls has just rendered a decision In a suit brought by the American Surety company of New York against Custer county and the receiver of the Commercial National bank. involving the payment of dividends by the bank according to information received here by County Attorney R. Nelstead The court ruled in favor of the county and of the bank holding that nutil the county had been paid in full its claim against the Commercial National bank, for money on deposit at the time the Lank closed. the Surety company may not participate in any of the vidends Mr. Nelstead explains and further: In January. 1926. the American Surety company paid the full amount of its bond to Custer county covering deposits in the bank amounting to $75,000 principal and $3.651 interest. Upon the payment of this money. the surety company claimed the right to an assignment of the county's claim against the bank to the extent of Its payment The county contested the surety company's position and Judge Pray in federal court finally ruled in favor of the county. The creditor's claim of Custer county against the Commercial National bank was allowed by the receiver shortly after the bank closed. for the stim of On this amount there has been paid to date, including the dividends held up in litigation in federal court the sum of $113.968 71 This latter sum consists of $75,000 from the American Surety company and three 10 per cent dividends from the Com mercial National bank. each in the sum of $12,989.57 or total dividends of $38,968 There still remains due from the bank to Custer county on the creditor's claim which has been allowed. $15.926.95 Since Custer county will receive all dividends until It is paid in full reduce the county's claim ap proved by the receiver 38 The above figures do not take into consideration the Interest paid 1v the American Surety company amounting to $3.65 In addition to the claim of $129. 895 66 which was approved by the receiver of the Commercial National bank. Custer county contends it is entitled In $35,000 for deposits and Interest which the receiver acting un for instructions from the comp troller of the currency at Washing ton, D. C., has refused to allow This action on the part of the recelver and the comptroller was the result of litigation pending at the time the Commercial National bank suspended business involving the validity of the Montana tax laws on shares of stock in national banks In 1922 and 1923, the Commercial National bank as well as the Miles City National bank. Pad paid their taxes under protest and commenced suits to recove the greater portion of the amount 80 paid contending that the present Montana tax laws discriminate gainst shares of stock in national b: nks in favor of other moneyed capital and moneys and credits in the hands of individual National bank shares are taxed on the basis of 40 per cent of their true value while moneys and credits ัŒั‚ะต taxed on the basis of per cent The district court of Custer having rendered decision in the cases favorable to the county 10 banks appealed to the supreme court of Montana The decision of the district court holding the tax laws valid. was affirmed by the Montana supreme court in March. 1926 Thereupon the banks appealed to the supreme court of the United States. It was expected that the arguments on the appeal before the supreme court of the United States. would be had during the first week of May. but recent information is to the effect that the cases will not be argued until October The comptroller of the currency has instructed the receiver of the Commercial bank to withhold ill dividends on this $35.000 Hom until this l'tigation is settled and these funds are now held in trust. pending the decision of the supreme court of the United States. Decidons rendered by the latter court on March 21. 1927. declaring the laws of Minnesota and Wisconsin as discriminatory against na ioral banks are generally considered as having bearing upon the Montana case If the supreme court of the United States reverses the Montana supreme court this $35,000 Item will set off against the total amount on deposit with interest. in the Commercial National bank at the time it suspended business. SO that Custer county will not be entitled to collect from the bank anv more than the sum of $129 895.66 already approved by the receiver On the ther hand if the county is again successful on the final appeal by the bank to the supreme court of United States. then the dividends held in trust by the re. celver pursuant to instructions from the impiro'ler of the currency will be paid to Custer county The litigation involving the American Surety company finally settled by the decree of Judge Pray recently rendered was commenced over two years 850 in federal court Sterling M Wood of Billings has represented the Surety company as Its attorney while Messrs. Loud and Leavitt of Miles City have been attorneys for the receiver of the Commercial National bank, and County Attorney Rudolph Nelstead has represented the interests of the county

9. March 30, 1928 Plevna Herald Plevna, MT
Article from Plevna Herald, March 30, 1928

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Judgment of the Court Is Affirmed On March 26th, the United States Circuit Court of Appeals for the Ninth Circuit, sitting at San Francisco, handed down decision affirming judgment by Judge Charles Pray of the Federal Dstrict Court of Montana in an action brought by the American Surety Company against Custer County and the Receiver of the Commercial National Bank. When the Commercial National Bank suspended business in March, 1924, on the ground of insolvency, the American Surety Company surety for the bank on county deposits. Custer County's claim was allowed for practically The bond of the Surety Company was $75,000.00. Having paid its bond to county, with interest, the Surety Company demanded an assignment of the county's claim against the bank to the extent of their payment. This the county refused, contending that until the county was paid in full through dividends declared by the receiver, the Surety Company could not be permitted to participate in the ividends. The result of an assignment would have been that the Surety Company would have participated each ten per cent dividend to the extent $7,500.00. Fifty per cent having been paid to date, the amount nvolved in suit Judge Pray held in favor of the county's contention, and the American Surety Company appealed. The United States Circuit Court of Appeals indicates that the receiver correct his position in paying the dividends to Custer County. MRS. CREMER In addition to its claim on the RECOVERING IN CITIES dividends payable to Custer County. the American Surety Company preLetters from Chas. A. Cremer have ented to the receiver of the Commerbeen received here reporting the cial National Bank, an indemnity physical condition of Mrs. Cremer who greement signed by officers of the suffered an operation in Minneapolis ank the bank agreed to hospital month ago. In communindemnify the Surety Company from cation sent to friends last week Mr. any loss it might sustain by signing Cremer wrote that his wife's condition he bond. The Surety Company was very grave and that the prospects attempted, by the litigation. to compel for her recovery were exceedingly dim. he receiver to allow claim in the However, later in the same week um of $75,000.00 and to pay thereon missive arrived bearing the joyful he particular dividends allowed to tidings that the doctors had declared Custer County. The Circuit Court of Mrs. Cremer out of danger and on the Appeals sustains the position of the road to recovery. receiver in rejecting the claim. The latter communication brought The argued orally before relief to the numerous friends of Mr. Circuit Court Judges Gilbert of Oregon, and Mrs. Cremer and these friends Rudkin of Washington and Deidrich of now unite in extending their wishes Idaho. Wood Cook of Billings and hopes for short period of conpresented argument in behalf of the valescence and an entire recovery for American Surety Company. Judge Mrs. Cremer. H. Loud of the firm of Loud & Leavitt of Miles City, represented the receivHELEN WEINSCHROTT IS APPENer of the Commercial National Bank, DICITIS VICTIM and County Attorney Rudolph Nelstead Helen Weinschrott. 10 year old Miles City, argued the case in behalf daughter of Mr. and Mrs. John Weinthe County. schrott, was taken to Baker Tuesday morning as the result of an attack of PRAIRIE FIRE THREATENS appendicitis. At noon the same DWELLING day she submitted to the operating On Thursday evening prairie fire, knife of Dr. Blakemore at the Elizaignited by escaping sparks from Hospital. According to the last report passing locomotive endangered the beth hospital. According to the last farm buildings Crowe whose report the young victim is progressing buildings are situated approximately quite favorably. mile west of town. The grass cover-

10. April 15, 1928 Great Falls Tribune Great Falls, MT
Article from Great Falls Tribune, April 15, 1928

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3 Bank Receivers Are Authorized to Compromise Debts Three petitions for compromise settlements between receivers of insolvent banks and debtors and a petition to sell the assets of another were authorized by Judge Charles N. Pray in the federal court Saturday. China R. Clarke, receiver of the First National bank of Fairview. was authorized to sell at auction the assets of the insolvent bank. consisting of bills. promissory notes, overdrafts. warrants and real estate, for not less than $7,000. subject to the approval of court. R. Miller, receiver of the First National bank of Moore, was authorized to accept $1,000 and certain realty from J. H. Morrow to compromise a debt of $11,803.31 The court empowered John A. Sanderson, receiver of the First National bank of Forsyth to accept 8600 in compromise settlement the First Presbyterian church of Forsyth and to deliver its notes of indebtedness. Sanderson. as receiver for the Commercial National bank of Miles City, was also authorized to accept in full settlement $900 from Roy Gibbs of Van Norman on an indebtedness of approximately $10,000. Earl V. Cline of Billings was appointed United States for the district of Montana and James M. Kerr of Los Angeles was admitted to practice as an attorney in the federal court.